A fall of 12.5% on car insurance premiums

A reduction in rates during the fourth quarter of last year has brought about an annual saving of £92 on comprehensive motor policies, but many seem unsure as to how long this dip in the cost of premiums will last into the New Year. This fall of 12.5% brought the price down in 2013 to £644 for the average comprehensive car insurance cover. The reduction in price on third party fire and theft were slightly less impressive but still accounted for an average of £85, 7.5%, in annual savings. These savings could in turn be passed on to customers who are looking for seized car insurance so don’t hesitate to contact your impounded car insurance specialist if you need our help insuring an impounded car.

Overall market prices were seen to fall throughout the first three quarters of the year far more than in the final quarter, the low rate of change during the fourth quarter reflecting repeated requests from within the industry for greater underwriting discipline after two solid years of price cuts. Throughout the UK, the average amount you’ll pay for a comprehensive policy fell by 1.1% between October and December 2013. Specialist insurance policies, such as seized car insurance policies could also see a drop in premiums.

The UK wide average price drop during the fourth quarter was minimal; some consumer segments found minor increases in their average premiums during the final quarter. The segments included policyholders aged between 66 and 70 along with those in the Scottish Borders, which are traditionally lower-risk. Notably, in the first quarterly increase during the past two years, men saw a minor increase in average premium of 0.9% during the final quarter.

Young men were the group who benefited the most from comprehensive price reductions in 2013, with 17-20 years watching their premiums fall by 24%, something that’s become attributed to the Gender Directive implemented in December 2012. Even women, who initially suffered from the rising prices brought about by the industries anticipation and introduction of gender neutral pricing, have also had a fairly soft market to choose from in 2013. Comprehensive cover prices fell by over 12% and 14% for 17-20 and 21-25 year old females respectively during last year.

It would seem that as the economy begins to turn around, the rates and premiums being asked for by numerous insurance companies have started to become regulated, with different initiatives and plans fully bedded down into the industry now. This evidence points to a turning point in the insurers pricing cycle, the rate of price reductions reduced considerably in comparison to earlier quarters, some segments seeing relatively modest premium increases and the insurance field appears to have become stable. This would indicate that the underwriting discipline asked for by many within the insurance business after previous rate reductions has now begun to return to the market and insurers have started to become more selective in their pricing strategies. Although these numerous reductions in prices have brought some cause for happiness from the people of the UK, it seems likely that the prices won’t stay like this for long.

If your car has been seized by the police contact us today for a seized car insurance policy. We will be able to source the lowest rates available for you.